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<docID>332479</docID>
<postdate>2024-11-05 14:49:59</postdate>
<headline>Interest rates left on hold despite fading inflation</headline>
<body><p><img class="size-full wp-image-332481" src="https://citynews.com.au/wp-content/uploads/2024/11/20150901001172448168-original-1-scaled.jpg" alt="" width="2560" height="1706" /></p>
<caption>The Reserve Bank has kept the cash rate on hold at 4.35 per cent. (Dean Lewins/AAP PHOTOS)</caption>
<p class="wire-column__preview__author"><span class="kicker-line">ByÂ <b>Poppy Johnston</b>Â in Canberra</span></p>
<p><strong>T</strong><strong>he Reserve Bank of Australia has opted to leave interest rates unmoved, marking 12 straight months at 4.35 per cent.</strong></p>
<p>All bets were on no change ahead of the central bank board's decision on Melbourne Cup day.</p>
<p>The call follows welcome progress on inflation but not enough for the central bank to start cutting the cash rate.</p>
<p>Price pressures have been ravaging households and businesses but are starting to ease, with annual headline inflation printing at 2.8 per cent in the September quarter, within the RBA's two-three per cent target range.</p>
<p>Yet the focus has been on underlying inflation, which has been moderating but still above target at 3.5 per cent in September.</p>
<p>"While headline inflation has declined substantially and will remain lower for a time, underlying inflation is more indicative of inflation momentum, and it remains too high," the board said in a statement.</p>
<p>"The November statement of monetary policy forecasts suggest that it will be some time yet before inflation is sustainably in the target range and approaching the midpoint.</p>
<p>"This reinforces the need to remain vigilant to upside risks to inflation and the board is not ruling anything in or out."</p>
<p>Most economists expect interest rate cuts to start next year, with many tipping a February start.</p>
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